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FY25 Budget Invests In Students, Employees

 

FOR IMMEDIATE RELEASE / April 25, 2024

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On Thursday, April 25, the Board of Education voted to approve the Fiscal Year 2025 budget, a people-focused spending plan that maximizes the district’s resources for the greatest student impact.

 

The $683.7 million General Purpose budget includes a $41 million investment in employee compensation, a historic increase that will bring every district employee to a market-value salary. This enhancement was made possible by several strategic decisions related to the budget cycle.

 

The FY25 budget includes three unique factors:

  • A phase-out of federal ESSER funding, which included $114 million in ESSER 3.0;
  • A significantly lower increase in TISA funding from the state; and
  • The results of a comprehensive salary study commissioned by the district.

 

Since the program’s creation, less than 23% of ESSER funding received by KCS was spent on staffing, and the majority of that money was used to pilot new initiatives and build long-term capacity through one-time infrastructure improvements.

 

The FY24 budget approved last year included a 26 percent increase in funding from the state, as part of the transition to the TISA school-funding plan. Rather than using that temporary increase for ongoing items, KCS chose to invest a significant portion into paying down debt. While TISA funding growth will be significantly lower in the year that starts on July 1 (FY25), the reduction in debt freed up resources to boost employee compensation.

 

As a result, the district was able to implement the recommendations of a third-party consultant and make its biggest investment ever in staffing and benefits.

 

“I am proud that we are able to make this historic investment in our people,” said Superintendent Dr. Jon Rysewyk. “I visit schools and classrooms every week, and I see the professionalism and dedication that our team members bring to their work. Investing in compensation is the right thing to do, and it is also a strategic decision that will help us recruit and retain the best employees.”

 

The FY25 budget also represents a change in philosophy from “adding” to “asking.” During the months-long budget process, every KCS department went through multiple rounds of budget justifications with their Assistant Superintendents and identified approximately $14 million to reinvest in salaries and other high-priority needs.

 

Rather than simply add a percentage to every budget item, this transformational process allowed KCS to more effectively allocate dollars to programs that are working.

 

“Using taxpayer resources wisely is a great responsibility,” said Jennifer Hemmelgarn, Assistant Superintendent of Business and Talent. “I’m grateful for the work of our budget and finance teams to reimagine our budgeting process, and I’m confident it will pay great dividends not only in the current budget cycle but also in the future.”

 

More information about the FY25 budget is available at knoxschools.org/budget.

 

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